MOHINI KALANTRI, MUMBAI v. DCIT 13(2), MUMBAI

ITA 4554/MUM/2010 | 2006-2007
Pronouncement Date: 29-07-2011 | Result: Partly Allowed

Appeal Details

RSA Number 455419914 RSA 2010
Assessee PAN AAMPK1985A
Bench Mumbai
Appeal Number ITA 4554/MUM/2010
Duration Of Justice 1 year(s) 1 month(s) 27 day(s)
Appellant MOHINI KALANTRI, MUMBAI
Respondent DCIT 13(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 29-07-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 29-07-2011
Assessment Year 2006-2007
Appeal Filed On 02-06-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B MUMBAI BEFORE SHRI R.S. SYAL (AM) & SHRI N.V. VASUDEVAN (JM) I.T.A. NO.4554/MUM/2010 (A.Y. 2006-07) SMT. MOHINI KALANTRI 75 HILL ROAD WAHEDNA APT. BANDRA (W) MUMBAI-400 050. PAN:AAMPK1985A VS. DY. COMMR. OF INCOME-TAX-13(2) MUMBAI. APPELLANT RESPONDENT APPELLANT BY SHRI H.S. PARIKH. RESPONDENT BY SHRI A BANI KANTA NAYAK. DATE OF HEARING 26-07-2011 DATE OF PRONOUNCEMENT 29-07-2011 O R D E R PER R.S. SYAL AM: THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF TH E ORDER PASSED BY THE CIT(A)-24 MUMBAI ON 29-03-2010 IN RELATION TO THE ASSTT. YEAR 2006-07. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DISALLOWANCE U/S.14A OF THE ACT. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT T HE ASSESSEE HAD EXEMPT INCOME OF RS.25 96 172/- BEING LONG TERM CAPITAL G AINS. THEREFORE NOTICE U/S.251(1)(A) READ WITH SEC. 251(2) WAS ISSUED REQU IRING THE ASSESSEE TO EXPLAIN AS TO WHY DISALLOWANCE U/S.14A READ WITH RULE 8D BE NOT MADE IN VIEW OF THE DECISION OF HONBLE SPECIAL BENCH ITAT MUMBAI IN THE CASE OF DAGA CAPITAL MANAGEMENT SERVICE LTD. (312 ITR 1) (AT). ACCORDING TO THE ASSESSEE IN THE PRESENT CASE NO SUCH EXPENSES WERE INCURRED FOR EA RNING THE EXEMPT INCOME. NOT CONVINCED THE AO MADE DISALLOWANCE. THE LD. CI T(A) FOLLOWING THE DECISION ITA NO 4554/M/10 SMT. MOHINI KALANTRI. 2 OF SPECIAL BENCH IN ITO VS. DAGA CAPITAL MANAGEMENT PVT. LTD. (312 ITR (AT) 1 DIRECTED THE AO TO WORK OUT THE DISALLOWANCE U/S.14 A READ WITH RULE 8D AS PER THE SAID DECISION OF HONBLE ITAT. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD WE FIND THAT THE ISSUE RAISED IN THIS AP PEAL IS NO MORE RES INTEGRA IN VIEW OF THE JUDGMENT OF THE HONBLE JURISDICTIONAL HIGH COURT IN GODREJ & BOYCE MFG. LTD. VS. DCIT (2010) 328 ITR 81 (BOM) IN WHIC H IT HAS BEEN HELD THAT DISALLOWANCE IS CALLED FOR U/S.14A IN SUCH CIRCUMST ANCES. HOWEVER THE MANNER OF COMPUTATION OF SUCH DISALLOWANCE HAS BEEN RESTORED TO THE FILE OF AO FOR MAKING ON SOME REASONABLE BASIS. IT HAS FURTHER BEEN HELD IN THIS CASE THE PROVISIONS OF RULE 8D ARE NOT APPLICABLE AS THESE ARE PROSPECTIVE . RESPECTFULLY FOLLOWING THE PRECEDENT WE SET ASIDE THE IMPUGNED ORDER AND DIRE CT THE AO TO COMPUTE DISALLOWANCE U/S.14A IN ACCORDANCE WITH THE RATIO L AID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE AFORE-NOTED CASE O F GODREJ & BOYCE LTD. 5. IN THE RESULT THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. ORDER PRONOUNCED ON THE 29TH DAY OF JULY 20 11. SD/- SD/- (N.V. VASUDEVAN) (R.S. SYAL) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI: 29TH JULY 2011. NG: COPY TO : 1. DEPARTMENT. 2.ASSESSEE. 3 CIT(A)-24 MUMBAI. 4 CIT-13 MUMBAI. ITA NO 4554/M/10 SMT. MOHINI KALANTRI. 3 5.DR B BENCH MUMBAI. 6.MASTER FILE. (TRUE COPY) BY ORDER ASST.REGISTRAR ITAT MUMBAI. ITA NO 4554/M/10 SMT. MOHINI KALANTRI. 4 DETAILS DATE INITIALS DESIGNA TION 1. DRAFT DICTATED ON 26-07-2011 SR.PS/ 2. DRAFT PLACED BEFORE AUTHOR 27-07-2011 SR.PS/ 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/ AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ 6. KEPT FOR PRONOUNCEMENT ON SR.PS/ 7. FILE SENT TO THE BENCH CLERK SR.PS/ 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 9. DATE ON WHICH FILE GOES TO THE AR 10. DATE OF DISPATCH OF ORDER *